Suppose that a McDonalds acquired a small potato grower.This merger would be classified as a:
A)monopolistic merger.
B)vertical merger.
C)conglomerate merger.
D)horizontal merger.
E)None of the above.

Question

Quizplus · Accepted Answer

A merger between a fast food restaurant like McDonalds and a small potato grower would be an example of a vertical merger, where the two companies operate at different stages of the production process. McDonalds would benefit from owning its own source of potatoes, ensuring a consistent and reliable supply.

Suppose That a McDonalds Acquired a Small Potato Grower